Being new to foreign exchange trading is not bad, but being ignorant about the do's and don'ts of forex trading can be truly devastating.

Forex trading can mean risking investments, but the results can be very rewarding and fulfilling.

Here are some vital do's and don't to consider in forex trading that can help you get on your way to making it good in the forex trading market, it is not gospel truth, but can do so much to help improve the odds to your favor.

Know how to exit from trades. It is just like gambling. If you place a trade and it's not working out for you, get out of it. Don't complicate the mistake you made by staying in and hoping for a reversal of fortune. On the other hand, if you are venturing into a winning trade, don't talk yourself out of the position just because you are bored or want to relieve stress, stress is just a natural part of trading, so get used to it.

Avoid trading too short-term. If you are hoping to make less profit, don't undertake the trade, since the spread you are trading on will make the odds against you far too high and could be hard to overcome.

Keep it simple. Don't try to convince yourself in complicated processes, analyses or overpower yourself with market reports or statistical data. Just get the feel of the market, ask around and be smart enough to make a crucial decision.

Heads and tails. Not the gamble thing, but the tops and bottoms. Realistically, there are no real "bargains" in forex trading, rather, trade in the direction the price is going in and results will either improve or stacked in your favor.

Try to ignore the incomprehensible technical's. What you need to do is understand the key indicators of price action, whether over-extended long or short. Take note that spikes occur in the market when it is moving along. Just be cautious if the market is tranquil.

Emotional Trading. Without a strategy, your trade concepts are just thoughts and thoughts are emotions, which is a very poor foundation for trading.

Humanly speaking, when we are upset and emotional, we don't tend to make the wisest decisions.

Lastly, confidence comes from successful trading and time-tested experience. If you lost money early in your trading career, your tendency may be to think it too difficult to get back up to regain it.

You Need A Forex Broker You Can Trust

Forex trading can be extremely lucrative but it's like the NYSE or NASDAQ - You have to have a certain amount of knowledge if you want to succeed.

That knowledge doesn't just pop into your head over night. There are traders worker the larger markets who've been trading all of their life and they still pick a bad stock every now and then. The same holds true for the Forex market. It's an ongoing learning process and you must constantly stay in tune with what's happening in the marketplace.

The one big difference between Forex and the larger markets is that the Forex market is completely unregulated, which means you can buy and sell stock from anyone you want to all day long and no one is there, looking over your shoulder, making sure everything is handled properly.

There are no laws or rules and there's no regulatory agency which means there's a greater potential for fraudulent behavior.

You do, however, need to use a broker to trade in the Forex market, just like the other exchanges. And you need a broker you can trust. One who will handle your trades quickly and flawlessly. An online Forex broker must have a website that's set up with full security and that communicates well with all the world-wide Forex markets.

And in light of what's happening with the economy, you need a broker with experience who can weather the storms and be there when it's time to cash in your stock.

When you're working with a broker who has an office down the street it's one thing. You can meet him, shake his hand and get a feel for his reliability and trustworthiness.

Obviously if you are just startinglearning about investments and trading you may notice all the jargon that thisfield uses. One of the most common mistakes people make is not knowing whatthey want to do, invest or trade.

They are very similar but they arealso very different. The main difference is that trading is short term andinvesting is longer term assessing good investment opportunities often makesuse of fundamental information, such as earnings, but can also use technicalanalysis to detect long-term trends. If one is trading they usually do it at aninterval of less than a week but this may be even up to a month or more. Tradersassess good trading opportunities by typically making use of trading systems orchart-based techniques to detect short-term patterns.

One of the main advantages oftrading over investing is that it provides the ability to make money regardlessof the overall direction of the market or the price of an individual stock. Investingthough is what I consider building wealth. Warren Buffet is the first personthat should come to mind with investing. He has built up his empire byinvesting in several companies and holding them for very long periods of time. Ofcourse there are others who have made millions simply trading, for the beginnerthough I suggest sticking to basic investing and hold your securities for overa month to be safe. Over time as you get better is when you could shorten youtime frames.

I remember when I started shiftingto trading I was overwhelmed by all the information that I thought I had tolearn before I started. Before long though I realized that the best way tolearn is by doing, so I started out not knowing everything but enough to getthe job done and before long I had learned more from just being in the marketthan any text or video could teach me.

Center of attention is essentialto your long term success and this means that you need to have a valid idea. Onceyou do you need to remain committed to it until such time as it proves eitherto be a success or a failure. Sadly many entrepreneurs actually lack this one skilland fail as a result.

Know your goal. Know what's significantto know. Know what you need to do on a day by day, week by week, month by monthand year by year basis. Stick to your plan and stay focused.

Many entrepreneurs feel strongbouts of desire, determination, or the inclination to do whatever they have toin order to succeed. This can last a while and it is not uncommon.

Are you aiming for success in daytrading? If you are willing to stick to the following three key componentswhile day trading, you will have greater success and increase the probabilityof reaching your goals. For someone who is new to day trading keep in mind thatthis is not a "get rich quick" fix. As with most things in life, tobe consistently successful you must apply yourself. In order to become aproficient trader consider the following three points:

- Study and review

- Discipline

- Emotional Control

Study andreview

Learning to day trade requires oneto apply themselves by studying the different concepts of trading and of coursestudying strategies. To have success of any kind one must be willing to put thetime in. It may be cumbersome at first, but as you begin to grow as a daytrader and witness reaching your goals, it will be worth the time youcontributed to studying. Make a practice of reviewing your trades at the end ofevery trading day. This is a great study habit and daily practice. Review yourtrades and make notes. Ask yourself these questions:

1. was the opening transactioncorrect and was it a good price?

2. How could it have beenbetter managed?

3. Was the stop set correctlyor should it have been tightened or loosened?

4. was the exit timely orshould I have waited longer in order to capture full profit potential?

Discipline

It is of utmost importance to havediscipline in any career but especially in stock trading. As a day-trader, youwill need to set some specific guidelines and rules to follow. It is easy toget off track unless you have specific guidelines to keep yourself with-incertain parameters. Anything outside those parameters could very likely throwyour focus off and cause you to make an error you typically would not be soinclined to do. Day trading is not the sort of business one should have the mentalityof "shooting from the hip" or "let the dices fall where everthey may." If it is your desire to reach your profit or income goals intrading of any kind, discipline is necessary.

Find a day trading or swingtrading strategy that works well for you and work on that strategy until youbecome proficient. After accomplishing the consistent success of using oneparticular trading strategy, you will be ready to move to another trading strategy.It is good to have multiple strategies so you will be able to handle differenttrades as they present themselves. This could apply to stock trading, forex, futures,etf, or index trading.

Stay positive

Have you ever noticed that peoplewho have a positive attitude have a more definite energy about themselves? Peoplewith a negative attitude exude a much different or less alluring energy. Whichone would you rather be around the most? While observing positive versusnegative people, it is easy to see that a positive attitude produces moresuccess than a negative attitude. So you say you would like to achieve successin your day trading career. Then a positive attitude is necessary!

Everyone has a difficult day fromtime to time. Being either a positive or a negative person does not prevent youfrom having a bad day. So yes, you will have a bad day from time to time instock trading or any day trading strategy. It is how you handle that bad daythat will determine if you are able to overcome it or not. Stay positive andyour trades are more likely to improve!

One last thing, remember there aremany, many people or day-trading coaches who will promise you the world andbuild false hope saying, "there is nothing to it." Make sure, if youfollow someone's guidance that you do your research and verify his or her ownsuccesses. In order to capitalize on your day trading strategies and rules itis very important to get the correct guidance in the first stages of yourtrading. Then you can build on the things you learn on a daily basis.